Most contractors set up an entity under which to operate their business. The two most common entities used are the corporation, generally the S-Corp, and the limited liability company, or LLC. The primary purpose for operating as an entity is to protect the owner’s personal assets from the company’s creditors. But like a child, once it is “born,” it must be maintained. Failure to properly care for the entity will result in its death or the loss of the asset protection.

Learning Outcomes:

Identify the basics of legal entities

Describe the factors needed to preserve legal entities

Describe the primary issues contractors face

CE Credits:

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